Motorola, United States, Basketball discussed on Paul Winkler
Dealer. Just talking during the break. Manyika portfolio yourself in dire was talking about you know, you hanging onto stocks. You hold the stocks day trading the portfolio because actually, you know, somebody else's managing the portfolio. If you're using professionally managed funds, and I said, yeah. Yeah. Let me think about that a little bit. And I thought I did I had an interesting conversation with a guy this weekend. And he was telling me he was buying individual stocks. And technically, we could say he was managing his own portfolio his own portfolio. So we could say that he was and I said, so what company by any tells me the companies buying and I said really are pulled up. I said what's ticker for that? He told me the ticker for I pulled it up. We're just talking about a a mutual fund selling for five times book value. Right. You know? And you know, you look value and the S and P five hundred is considered very high right now at three. Very I and this one is at five this, DACA. Just bought us at twenty. I don't think I've seen many companies selling for that high. Are you sure this is good? Portfolio here. Oh, wow, step away from the computer. I'm not picking. But I am because so often we just, you know, a lot of times people do things they don't realize, and here's what's going on. And it's a good company has great prospects. And the and the conversation was regarding technology technology related company in you know, what it was really funny because this guy is sharp sharp guy. You know, it was really funny about it is he was talking about technology, and he says, you know, technology technology the way of the future. I said I heard the same thing late ninety s when tech stocks were knocked out because he had an answer. But they're they're really some really cool things with artificial intelligence, blah, blah, blah, and this is much more pervasive than the companies in the late ninety s and it just reminded me of year. Well, no, it's different. This time is often. What you hear? Well, he he made a comment. I says, hey, look, I says, you know, Kodak is. Yeah. Bankrupt. Right. But they're the inventor of the of the digital. You know, the the digital camera right and bankrupt. And then I said, you know, Motorola, inventor of the cell phone. You know, didn't do so well, nobody has a Motorola digital or iphones cellphone. Nobody uses it a Motorola. Cellphone, right. And I said it is the users of the anti technology that benefit more than the technology. Right. And he goes he goes. Yeah. You know, you think about it. If you own that stock, and that company make some technology you bought the technology once, and that's when they benefit, but the end user of the technology is using it over and over and over again, I said you just gave me the absolute best explanation for why you don't do what you did. That was beautiful that was brilliant. Yes. When I own the company making the technology, I by the technology from them once they've benefit once I own their stock. They benefited once. But if I buy the company using whatever this company developed I benefit over and over and over again. I was just thought that was brilliant. So back to IRA you had this thing. So you're talking to somebody who was was you actually handle their their 4._0._1._K. Yeah. Another 4._0._1._K, and they were really upset because. So for year to date ending September. They were not doing as well as their portfolio with their other program. So they had a second portfolios. So they had their private stuff. But they're there. 4._0._1._K and they decided to just keep their other assets. Were there other adviser? Okay. All right. Got it. So I sent them a message catch me, you know, the partners have been looking at returns, and we're not really happy the other portfolios doing much bad, and we are not picking on anybody. But this is really educational what you're about to save. This is really good stuff. So I pulled up to returns. And I said, okay what I need you to do is. I need you to hold your reports that you're looking at it. So when I do come down we can compare what you're looking at that. You have is your other adviser, and what you have with us. Right. How we're managing the money. So it was as I kind of expected he had a lot of funds that are all large cap all very large cap stocks. And a lot of people are in the perception that safer, right? And I basically said as you know, what you would have been done a Roth instead of having these six funds if you just went to vanguard of what she s and p five hundred actually be more diversified. Totally. But then I showed you wouldn't be better off five hundred video coming out on that. And as wait, wait, wait till you see how undiversified that is. Go ahead. So I showed him what we had. Yeah. You know as far as the investments, and there are nineteen different funds in the portfolio covering their ninety. I'm sorry. Nineteen different asset classes in the portfolio. So I said to him, you know, in that area of the market that we have that large cap era that SMP area. Yeah. We actually featured by a little bit. Yeah. Got from actually did better in that area the market, right? However. Right. If you're visor really knew what would he would have done in the beginning of this year is put you in micro caps docs, right because you're. Dated September the large cap area of the market was up ten and a half percent. With a microcosm was up eleven point three. Right. You had better return. Sure. About even better returns. Yeah. But then I showed him in the ten point three beat what they had to do this. I showed them. Yes. This year, you might be happy or gear today might be happy with the large cap era the market, right? But last year, you would have been thrilled that out was not all you own because of all the different areas of the stock market that was basically about the worst area to be in right? Right now. And how soon we forget, right. So the problem that most especially in the decades, you know in your deck in nineteen. We just did a video is nineteen twenty nine to nineteen fifty eight nine hundred sixty six nine hundred. I think we broke it up to nineteen seventy five and seventy six three eighty three or somebody forgot all the decades really really long periods of time, you know, with with no returns in that area. And it was the worst area of the market in many many different periods throughout history. So that's what I went back, and they said to me, well, can you? Go ahead and show was still at these returns are for these funds for the last five years. Make sure I could do that. Well that wasn't enough for me. Yeah. I tell people I don't care what smart dust one hour one day one week one month one year one year does not make a market. Yeah. So I went back to two thousand and one. Thank you relate to seventeen years. I think anybody out there are seventeen years unless you Twenty-three listening to the show. Now's ROY came up with the S and P five hundred one top year. That's it US an international. That's it was just one time seven years, and it was also the worst performing area one out of seventeen years, and yet that's all anybody talks about in the media. What the Dow and the s&p right, right? They consider that to be the Martin. Yeah. Sure. So then I decided, okay. Let's take a ten thousand dollar investment. And let's look at returns. Let's hear what the ten thousand dollars would have grown too. So from two thousand and one the two thousand seventeen the S and P five hundred would have grown to twenty eight thousand five hundred twenty three dollars. Okay. Ten most people would say, well, you almost tripled my money. However in the best area to be in emerging markets small. Seventy nine thousand ninety eight dollars. Now of the suitability fifteen funds that were in this analysis that I did. Uh-huh. Okay. The SNP was Ashley number fourteen really in return. Really? Yeah. That's interesting. You work. You man, you're a number crunching man this way. And now the only thing that actually did worse. What's that international or national arch? Did I do credit for guessing that Josh? Okay. He thinks he's like we'll give you half our rally. I said at the same exact time. So I think I had I had never ever seen outside of our portfolios because there was an article talking about how the dumb money is actually putting their money in international large right now. And that's smart. That was in the Wall Street Journal, recently, not unlike. Exactly. Never ever seen in any other 4._0._1._K plan. Yeah. Other than the ones that we handle microcosm stocks. No, no. No. No. No, no. You don't ever see that? That is very true. Microchips, stocks would have grown to fifty one thousand now six hundred and forty two dollars. Almost twice was. He has a really good video. This is interesting. Yeah. Naturally emerging markets. What was the best performing areas to being but small international value another area that most fun companies do? No, no, I yeah. Yeah. If you go and do a search for that forget about it grew to sixty five thousand four hundred seventy nine dollars. How and you know that is an here's here's why that's important, folks. Okay. So what would Irish talking about here is there a lot of different areas that do well at different times in some areas that have done much are. Well, why do we even low on large US stocks? Why even bother well because there are years like that one year where that was the top asset category was the area the market, especially this is really critical in you're taking income in retirement. You gotta have something that is doing really well. And what happens is we love diversification. You know, until what is doing really well is the one area that the media always reports on. So it's very very challenging. I like an us to a fire department. You know, we we talk about if you look at a fire department in their out those guys are out there playing basketball that they're playing softball or something like that. And that's a cushy job. I love to be doing that one. All right. I'm gonna be out there playing basketball. Are you going to be the guy that runs in the burning building when it really comes down to it? And does the hard work of firemen? And that's really where our job because very very difficult because what happens is so often we are getting you to do what you just really don't wanna do on your own. Well, y I hired a personal trainer. It'll sure. Yeah. It's another example level of discipline. He said something which made me think about some people that come to see us. I asked them now. Okay. Now, fifty seven all right. The personal trainers. Thirty right. The personal trainers in the gym every single day, right hours. So I want the six pack. I said to him. What do I need to do? How many hours? Do I have to be a data will have to work out? How many days are can on? What machines? Yeah. He says you have to be here about seven days a week at least one hour a day. Yeah. But but you cannot at work. Diet. Exactly. And that's the hard one. I always myself. That's like an investor coming in for the first time and saying to me. I'm fifty five and fifty six and fifty seven. I'm willing..